News in brief:
– Thailand is setting up a railway system to export agricultural products to China through more efficiently.
– The move, facilitated by collaboration among government agencies and private sector stakeholders, aims to expand the market for Thai agricultural products.
Thailand is set to commence a new era of agricultural exports to China via the Thai-Laos railway system, marking a significant step forward in cross-border trade and logistical efficiency.
According to Keniga Ounchit, the Prime Minister’s Office deputy spokesperson, this initiative is slated to begin in December 2023, following extensive collaboration among government agencies and private sector stakeholders.
The successful finalisation of customs railway transportation documentation has paved the way for seamless trade between Thailand and China, which further extends to Laos and Europe. Key players involved in expediting this process include the Commerce Ministry, the Foreign Ministry, the Agriculture and Cooperatives Ministry, the Marketing Organisation for Farmers, and PTT, a news report said.
As stated by Keniga, this advancement will establish a robust logistical network for cross-border commerce, ensuring broader access to Thai agricultural products in the global market. She remarked that it was encouraging that several core agencies in the agriculture sector collaborated on expanding the market for Thai products in targeted countries via the railway system.
Meantime, China remains Thailand’s largest market for agricultural exports. A report says that a strong demand has been observed for durians, lady finger bananas, mangosteens, and pomelos, which amounts to at least 20,000 tonnes annually.
Despite this growing demand, logistical constraints have previously hindered Thailand’s ability to fully meet China’s needs.
Furthermore, the Thai government’s strategic move to leverage the railway system for agricultural exports is driven by twin objectives. These objectives include expanding the market for Thai agricultural products and boosting Thai farmers’ income. The initiative is also anticipated to positively impact Thailand’s overall economic growth.
Despite facing a slowing economy, China remains the world’s second-largest economy and a crucial export market for Thailand. Data from the Trade Policy and Strategy Office indicates a 4.5% increase in Thailand’s exports to China during the first half of 2023, primarily driven by agricultural products.
The 6th China International Import Expo (CIIE) held in Shanghai earlier in November 2023 concluded with record-high tentative deals of $78.41 billion, further proving the strong trade ties between Thailand and China. This achievement builds upon the success of the third Belt and Road Forum for International Cooperation held in Beijing in mid-October 2023.
